Asset Division:
Colorado courts divide marital property “equally,” as defined in C.R.S. 14-10-113. Generally this means that judges give each person 50% of the marital property. However, sometimes courts divide property differently, such as a 70/30 split. Ultimately, Colorado is an "equitable division" state, as opposed to a "community property" state.
Marital property generally includes all property acquired by either party during the course of the marriage, excepting property given to one person via gift or inheritance. Property that is not marital is called separate property. Appreciation in value of separate property during a marriage can be considered part of the marital property. For example, if one party owns a home worth $200,000 at the time of the marriage, that home would probably be considered separate property. Yet, if the home increases in value to $500,000 during the marriage, each party will likely be entitled to about 50% of the additional $300,000.
Aside from a home, retirement accounts, pension plans, IRAs, and other similar items tend to be the most significant property division issues raised during divorces. Yet, valuation and division of those accounts generally follows the same formula described above, I.e. the increase in value during the marriage is usually considered marital property.
Withdrawals and transfers of retirement assets are subject to a tax penalty of 10% for early withdrawal when the plan participant is under age 59 1/2. Yet, transfers incident to a divorce are non-taxable if done using the correct procedure. For purposes of dividing either a pension or defined contribution plan, the transfer is often done using a Qualified Domestic Relations Order (QDRO). Other retirement accounts such as PERA accounts and IRAs are divided differently to avoid tax penalties.
Maintenance:
Spousal maintenance can be addressed both in the short term and long term. Colorado statutes permit a temporary award of maintenance while a case is still before the court. Colorado statutes also authorizes awards of long term maintenance to run for an amount of time after the divorce case is closed.
In 2014, Colorado legislators approved a maintenance formula applicable to cases in which the combined adjusted gross income of the parties was less than $240,000 per year. Yet judges may depart from the guidelines used in that formula.
Judges generally consider the following factors when assessing spousal maintenance:
-Incomes of both parties
-Duration of the marriage
-Standard of living attained during the marriage
-Care for minor children by either party
-Outcome of property division
-Earning potential of each party
Contact attorney James Frazier today at (720) 583-5529.
Colorado courts divide marital property “equally,” as defined in C.R.S. 14-10-113. Generally this means that judges give each person 50% of the marital property. However, sometimes courts divide property differently, such as a 70/30 split. Ultimately, Colorado is an "equitable division" state, as opposed to a "community property" state.
Marital property generally includes all property acquired by either party during the course of the marriage, excepting property given to one person via gift or inheritance. Property that is not marital is called separate property. Appreciation in value of separate property during a marriage can be considered part of the marital property. For example, if one party owns a home worth $200,000 at the time of the marriage, that home would probably be considered separate property. Yet, if the home increases in value to $500,000 during the marriage, each party will likely be entitled to about 50% of the additional $300,000.
Aside from a home, retirement accounts, pension plans, IRAs, and other similar items tend to be the most significant property division issues raised during divorces. Yet, valuation and division of those accounts generally follows the same formula described above, I.e. the increase in value during the marriage is usually considered marital property.
Withdrawals and transfers of retirement assets are subject to a tax penalty of 10% for early withdrawal when the plan participant is under age 59 1/2. Yet, transfers incident to a divorce are non-taxable if done using the correct procedure. For purposes of dividing either a pension or defined contribution plan, the transfer is often done using a Qualified Domestic Relations Order (QDRO). Other retirement accounts such as PERA accounts and IRAs are divided differently to avoid tax penalties.
Maintenance:
Spousal maintenance can be addressed both in the short term and long term. Colorado statutes permit a temporary award of maintenance while a case is still before the court. Colorado statutes also authorizes awards of long term maintenance to run for an amount of time after the divorce case is closed.
In 2014, Colorado legislators approved a maintenance formula applicable to cases in which the combined adjusted gross income of the parties was less than $240,000 per year. Yet judges may depart from the guidelines used in that formula.
Judges generally consider the following factors when assessing spousal maintenance:
-Incomes of both parties
-Duration of the marriage
-Standard of living attained during the marriage
-Care for minor children by either party
-Outcome of property division
-Earning potential of each party
Contact attorney James Frazier today at (720) 583-5529.
Frazier Legal LLC
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